"This makes a triple-dip recession in the first quarter marginally less likely, and slightly reduces the chances of further Bank of England stimulus in the near-term"
- Rob Wood, an economist at Berenberg Bank
Britain's manufacturing output rose twice as much as economists expected in February, as it rebounded from a slump. Nation's manufacturing production increased 0.8% from January, when it fell 1.9%, above analysts' forecasts, which called for a modest 0.4% gain, the Office for National Statistics said Tuesday. Latest data may ease concerns that the economy is heading to a triple-dip recession, as manufacturers are facing a continued slump in the Eurozone, the U.K.'s biggest trading partner, as well as lacklustre demand at home.
"This makes a triple-dip recession in the first quarter marginally less likely, and slightly reduces the chances of further Bank of England stimulus in the near-term," said Rob Wood, an economist at Berenberg Bank in London. "This does not affect the underlying picture for the U.K., which is one of stagnation."
"While February's industrial production and trade data increase the chances that the economy has just about avoided a so-called triple-dip recession, they hardly paint a picture of strength," said Samuel Tombs, an economist at Capital Economics Ltd. in London. "The big picture is that the economic recovery is still struggling to gain any traction."
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